President Donald Trump is preparing to slap tariffs on Chinese goods just after midnight Friday, the first shot in a trade war between the world’s two biggest economies.

Tariffs on $34 billion of Chinese goods are scheduled to take effect at 12:01 a.m. in Washington, the U.S. Trade Representative confirmed in an email Thursday. The milestone marks a new and damaging phase in a conflict that has roiled markets and cast a shadow over the global growth outlook.

In Beijing, policymakers are digging in for what could be a protracted fight—one in which they say they won’t be the aggressor. Beijing has said retaliatory tariffs on U.S. goods ranging from soybeans to pork will go into effect immediately after the U.S. acts.

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